Vimeo has acquired online video editor Magisto. The IAC-backed business has bought the Israeli firm, which allows users to create and edit short-form videos for a range of platforms, in a deal that is thought to be around $200M, according to local reports.
It comes eighteen months after Vimeo acquired live video streaming platform Livestream.
Magisto, which has over 75 employees with offices in California and Israel, was founded in 2009 and has over 100M users. It employs AI to allow subscribers to speed up the video editing process. Following the acquisition, the two companies will work together to develop new short-form video creation capabilities for the Vimeo platform aiming to help individuals or businesses tell their stories more easily. Magisto users will be able to access Vimeo’s full suite of workflow tools, so they can deploy their videos across platforms with a click of a button and measure performance in one place. Investors in Magnisto included Sandisk, Samsung, Qualcomm, Ourcrowd, Western Digital Capital, Horizon and Mail.ru.
The transaction is expected to close by the end of the second quarter.
“Social media has sparked an insatiable demand for video – audiences today expect high-quality video content from every business, regardless of size or budget. But we’ve found that most small businesses don’t have the tools, resources or expertise to meet this increased demand,” said Anjali Sud, CEO of Vimeo. “Magisto’s proprietary technology enables cutting edge mobile apps and AI-powered editing tools which, combined with Vimeo’s scale and unmatched creator community, will empower more people to tell compelling stories through video.”
Oren Boiman, founder and CEO of Magisto, added, “Magisto guides entrepreneurs and small business owners through the video storytelling process, helping them use video effectively to grow their business and engage with audiences. We level the playing field so that any business can move fast and compete in today’s video-first world. We’re thrilled to join Vimeo’s industry-leading platform, and to power their vision to make professional quality video creation accessible to all.”